Conexus Resources Group, headquartered in the UK, has officially opened a cutting-edge aluminium rod plant in Bahrain with a substantial investment of $100 million. Konexus Aluminium, the newly established company, will be pivotal in processing liquid aluminium sourced from Bahrain's national manufacturer, Alba, and transforming it into high-quality aluminium rods. These rods are intended to cater to regional and international clients, solidifying Bahrain's position as a premier manufacturing and export hub for global markets.
Dr Khaled Fahad Alalawi, Assistant Undersecretary for Industrial Development at the Ministry of Industry and Commerce, said, "This inauguration marks yet another milestone achievement that stands as a testament to Bahrain's thriving manufacturing sector, where Bahrain continues to provide companies with an ideal gateway to tap into the Middle East market and beyond."
About the new plant
Boasting an annual production capacity of 32,000 tonnes, this state-of-the-art facility marks a significant addition to Bahrain's industrial landscape. Operating in 15 countries worldwide, including prominent locations like Switzerland and Singapore, Conexus Resources Group aims to capitalise on its extensive expertise in advanced processing and logistical capabilities to manage global value chains effectively.
Brijender Pal Singh, Chief Executive Officer of Conexus Resources Group, added, "We are pleased to officially go-live with production at our newly constructed and inaugurated state-of-the-art aluminium rod plant in Bahrain. Konexus aims to provide high-quality aluminium rods to global industrial uses, and Bahrain was a clear destination of choice given the availability of experienced and highly skilled local talent, duty-free trade advantage and strategic location that offers direct access to one of the fastest growing markets in the world."
The inauguration of this plant not only underscores Conexus Resources Group's commitment to technological excellence but also enhances Bahrain's reputation as a key player in the global manufacturing landscape. The collaboration between Conexus Resources Group and Alba is set to contribute significantly to the international trade of high-quality aluminium products, further establishing Bahrain's standing as a leading destination for manufacturing and exports.
"Over the past 18 months, Conexus Resources have made remarkable progress in establishing their rod plant facility, owing to the collaborative efforts of Team Bahrain as well as Alba. This initiative is a giant stride for the local manufacturing sector and is furthered by a larger strategic plan that will see the development of the kingdom's aluminium downstream park, further placing Bahrain at the forefront of aluminium manufacturing on regional and global levels," added Dr Khaled Fahad Alalawi.
Ali AlMudaifa, Chief of Business Development at Bahrain Economic Development Board, stated, "Beyond its strategic location and free trade agreements covering 22 countries, Bahrain provides investors the best value manufacturing operational costs in the region with unparalleled export efficiencies owing to a world-class logistics zone, providing fertile ground for companies looking to set up and expand across the region – the Konexus Aluminium plant is a welcome addition to Bahrain's thriving aluminium industry, adding-value with their niche experience and capabilities."
Bahrain's manufacturing sector
As of 2023, Bahrain's manufacturing sector stands as the second-largest non-oil contributor to the real GDP, accounting for 13.9 per cent. This sector boasts a robust portfolio of national and international companies, exemplified by Alba, the largest single-site smelter outside China. Alba is pivotal, contributing over 2 per cent to global aluminium output. Notably, the sector actively facilitates the establishment of investment-ready land for aluminium downstream projects.
Bahrain's commitment to fostering economic diversity is evident in the national Economic Recovery Plan, where the manufacturing sector is prominently featured as one of the five priority non-oil sectors. This strategic emphasis underscores the importance placed on sustaining and expanding the contributions of the manufacturing industry to the overall economic landscape.
Bahrain offers an advantageous business environment for manufacturing companies, characterised by a favourable tax regime and the allowance of 100 per cent foreign ownership in most sectors. A diverse portfolio of aluminium manufacturing companies enhances the industry's expertise, fostering downstream clustering. Export-oriented enterprises benefit from efficient connectivity to global markets through advanced air and sea freight services. Moreover, the King Fahad Causeway facilitates direct access to Saudi Arabia, providing a strategic gateway for international trade.
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